Freshworks (NASDAQ:FRSH) Sets New 12-Month High - Here's Why

Key Points

• Freshworks shares reached a new 52-week high of $14.37, trading up 6.8% and recently changing hands near $13.98. The stock’s consensus analyst rating is “Moderate Buy,” with an average price target of $14.46.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.17 versus the $0.13 consensus and revenue of $237.38 million, up 16% year over year and above estimates.
• Institutional investors own 75.58% of Freshworks, while insiders own 8.54%; a recent executive share sale was conducted under a pre-arranged plan to cover tax obligations tied to vested equity awards.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $14.37 and last traded at $13.9760, with a volume of 1798559 shares traded. The stock had previously closed at $13.22.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on FRSH. Robert W. Baird set a $13.00 target price on Freshworks in a research report on Wednesday, August 5th. UBS Group raised their price target on Freshworks from $11.00 to $14.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Wall Street Zen upgraded Freshworks from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Guggenheim began coverage on Freshworks in a report on Wednesday, July 22nd. They set a "buy" rating and a $25.00 price objective for the company. Finally, Piper Sandler upped their target price on shares of Freshworks from $10.00 to $12.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $14.46.

Freshworks Trading Up 6.8%

The company has a fifty day moving average price of $12.52 and a two-hundred day moving average price of $10.32. The firm has a market cap of $3.68 billion, a P/E ratio of 22.10, a PEG ratio of 8.52 and a beta of 0.90.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million during the quarter, compared to analysts' expectations of $233.62 million. Freshworks had a return on equity of 5.52% and a net margin of 20.49%.Freshworks's revenue for the quarter was up 16.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.18 EPS. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, sell-side analysts expect that Freshworks Inc. will post 0.05 EPS for the current year.

Insider Activity

In other news, CAO Philippa Lawrence sold 3,492 shares of the stock in a transaction on Monday, October 5th. The shares were sold at an average price of $12.98, for a total transaction of $45,326.16. Following the completion of the sale, the chief accounting officer owned 379,639 shares of the company's stock, valued at $4,927,714.22. This represents a 0.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.54% of the stock is owned by corporate insiders.

Institutional Trading of Freshworks

Institutional investors have recently modified their holdings of the company. Tidal Investments LLC acquired a new position in shares of Freshworks during the second quarter worth about $374,000. Integrated Wealth Concepts LLC grew its holdings in shares of Freshworks by 116.0% during the second quarter. Integrated Wealth Concepts LLC now owns 44,010 shares of the company's stock worth $445,000 after buying an additional 23,632 shares in the last quarter. NewEdge Advisors LLC acquired a new stake in Freshworks in the 2nd quarter valued at approximately $110,000. IFP Advisors Inc raised its position in Freshworks by 51.6% in the 2nd quarter. IFP Advisors Inc now owns 8,120 shares of the company's stock valued at $82,000 after buying an additional 2,765 shares during the last quarter. Finally, Allworth Financial LP lifted its stake in Freshworks by 149.9% in the 2nd quarter. Allworth Financial LP now owns 20,936 shares of the company's stock valued at $212,000 after acquiring an additional 12,559 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors.

About Freshworks

Freshworks Inc NASDAQ: FRSH develops cloud-based software designed to help businesses manage customer and employee experiences. Its products are intended for organizations of various sizes and emphasize ease of use, rapid deployment and integration with other business applications.

The company's product portfolio includes Freshdesk for customer support and service management, Freshservice for IT service management, Freshsales for customer relationship management, Freshchat for messaging and conversational engagement, and Freshmarketer for marketing automation and optimization.

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